The U.S. International Trade Commission (ITC) today announced the recommendations and views
on remedy that its members will forward to the President in its global safeguard investigation
regarding imports of circular welded carbon quality line pipe.

Today's action follows the Commission's October 28, 1999, determinations in the injury phase of
this investigation, in which five Commissioners made affirmative determinations and one made a
negative determination.

Under the statute, only those Commissioners who made affirmative determinations were eligible to
vote on the remedy recommendation. However, the Commissioner who made a negative
determination may submit separate views regarding what action, if any, the President should take.
The Commission will submit its report to the President by December 17, 1999. The report will
include the Commissioners' determinations, recommendations, views, and statements. The
President, not the Commission, will make the final decision whether to provide relief to the U.S.
industry and the type and amount of relief.

Vice Chairman Marcia E. Miller and Commissioners Jennifer A. Hillman and Stephen Koplan
announced that they will recommend that the President impose a tariff rate quota on imports of
circular welded carbon quality line pipe for a four-year period. The in-quota amount would be
151,124 short tons in the first year of the remedy and would be increased by 10 percent annually in
years two, three, and four of the remedy. In each year of this recommended remedy, any over-quota
imports would be subject to a 30 percent ad valorem tariff in addition to the current U.S.
tariffs. These Commissioners further will recommend that the President, in allocating the overall
quota, recognize the disproportionate growth and impact of the imports from Korea; that the
President initiate international negotiations with Korea to address the underlying cause of the import
surge and the serious injury to the domestic industry; and that the tariff rate quota not apply to
imports of these products from Canada, Mexico, Israel, and any imports entered duty-free from the
beneficiary countries under the Caribbean Basin Economic Recovery Act or the Andean Trade
Preference Act.

Chairman Lynn M. Bragg and Commissioner Thelma J. Askey announced that they will recommend
that the President impose a duty, in addition to the current rate of duty, for a four-year period on all
imports of line pipe that are within the scope of the investigation as follows: 12.5 percent ad
valorem in the first year of relief; 11 percent ad valorem in the second year of relief; 9.5 percent ad
valorem in the third year of relief; and 8 percent ad valorem in the fourth year of relief. These
Commissioners will also recommend that the duty increase not apply to imports of these products
from Canada, Israel, and any imports entered duty-free from the beneficiary countries under the
Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act. Commissioner
Askey, having made a negative finding with respect to imports of line pipe from Mexico under
section 311(a) of the NAFTA Implementation Act, will recommend that imports from Mexico be
excluded from the duty increase. Chairman Bragg, having made an affirmative finding under
section 311(a) of the NAFTA Implementation Act, will recommend that imports from Mexico be
subject to the duty increase.

Commissioner Carol T. Crawford, because she made a negative determination on injury, was not
eligible to vote on remedy. She stated that she does not believe that any import relief is appropriate
in this investigation. Her views on injury and her statement addressing the selection of a remedy, if
any, will be submitted to the President by December 17, 1999.

On October 28, 1999, Vice Chairman Miller and Commissioners Hillman and Koplan determined
that circular welded carbon quality line pipe is being imported in such increased quantities as to be a
substantial cause of serious injury to the domestic circular welded carbon quality line pipe industry.
Chairman Bragg and Commissioner Askey determined that circular welded carbon quality line pipe
is being imported in such increased quantities as to be a substantial cause of the threat of serious
injury to the domestic circular welded carbon quality line pipe industry. Commissioner Crawford
determined that circular welded carbon quality line pipe is not being imported into the United States
in such increased quantities as to be a substantial cause of serious injury or threat of serious injury to
the domestic circular welded carbon quality line pipe industry.

Under section 311 of the North American Free Trade Agreement (NAFTA) Implementation
Act, the Commissioners who made affirmative determinations were required to find whether
imports of circular welded carbon quality line pipe from Canada and Mexico account for a
substantial share of total imports and whether they contribute importantly to the serious injury
or threat of serious injury. Vice Chairman Miller and Commissioners Hillman, Koplan, and
Askey made negative findings with respect to such line pipe from Canada and Mexico.
Chairman Bragg found that imports of such pipe from Canada account for a substantial share of
total imports but do not contribute importantly to the threat of serious injury to the domestic
industry. She further found that imports of such pipe from Mexico account for a substantial
share of imports and contribute importantly to the threat of serious injury to the domestic
industry.

The Commission's public report to the President Circular Welded Carbon Quality Line Pipe
(Inv. No. TA-201-70, USITC Publication 3261, December 1999) will contain the views of the
Commissioners and information developed during the investigation. A copy may be requested
after January 7, 2000, by calling 202-205-1809 or writing to The Office of the Secretary, 500 E
Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.